Redcare Pharmacy Shares Under Pressure as Margin Targets Are Slashed

Redcare Pharmacy slashes its medium-term EBITDA margin target to just over 5% from over 8%, sending shares to a new low with RSI indicating deep oversold conditions.

Investors in Redcare Pharmacy are facing a significant reset of expectations. The company has substantially revised its medium-term profitability goals downward. Its long-term target for adjusted EBITDA margin is now set at just over 5%, a marked reduction from the previous ambition of more than 8%. This recalibration helps explain the persistent downward trend in the stock's valuation.

Technical Indicators Signal Deep Oversold Conditions

The equity touched a fresh 52-week low of €30.54 on Friday. The share price has closed in negative territory in eight of the last ten trading sessions, representing a decline of approximately 23% in that short period alone. The Relative Strength Index (RSI) currently sits at a level of 16, which is technically viewed as deeply oversold. Immediate resistance levels are identified at €32.49 and €51.05, corresponding to the short-term and long-term moving averages.

Trading volume on Friday showed a slight decrease, with around 124,000 shares changing hands. This may suggest some exhaustion in selling pressure, though it remains uncertain whether this will lead to a period of stabilization.

Ambitious 2026 Forecasts Remain in Place

Despite the lowered margin outlook, the company's growth projections for the current fiscal year remain assertive. Redcare Pharmacy anticipates revenue growth between 13% and 15%. Within this, the German prescription business is expected to surpass €670 million, while the over-the-counter (OTC) segment is forecast to grow by 8% to 10%. The targeted adjusted EBITDA margin for the year is at least 2.5%.

The market's next key checkpoint will be the quarterly results scheduled for release on May 6, 2026. This report will provide critical evidence on whether the growth narrative in Germany's e-prescription sector is materializing and if the newly established, more modest margin targets are attainable.